One of the main functions of environmental biotechnology is to address the study of microbial communities that provide essential services to society. Beyond the similarities with industrial and agricultural microbiology, the unique features exhibited by environmental biotechnology, such as process objectives, biomass characteristics and type and mode of feeding (substrates), allow a clear distinction from the other related disciplines. Recent advances in microbial ecology, ecophysiology, genomics and process engineering are herein reviewed to illustrate how the integration of the new knowledge can help overcome the shortcomings of classic microbiological analyses to understand, predict and optimize the performance of wastewater treatment.